Obama ostentious tax saving plan

Barack Obama finally completed his 100 days as US president, apart from making high profile visit to 20 G nations meeting in London, Obama administration did come up with an over ostentious plan of increasing country tax revenue.

In one of his speech, President Obama clearly directed his administration to end tax breaks for American Companies which are outsourcing their work to low cost countries like China, India , Philipines etc. According to Obama this will really help them to increase treasury revenue and also able to increase employment rate in the country Though its really a very ostentious plan by obama to increase tax revenue but will it really help him to meet the goal.

First of nowever days most of the operations of these companies are highly integerated and dependent on each other, so it will be very suprising how these companies will disintegrate their operations and what will the cost of disintegration and who will finally bear it.

Most of these firm operate across the globe and work 24/7 365 days, so at any point of time they have to take help from the people who operate from low cost labour countries like India and China.

Most of the companies which moved their operations to India and China made that decision not only because of tax breaks but because they are able to tap large pool of skilled labour at potentially less cost.

So it may be possible that Obama may able to fullfill his promise but the real question is the operation and economic viability of the companies




Thanks&Regards,
Mohit